Blockchain outside Bitcoin
Blockchains are a continuously growing list of records, called blocks, linked and secured using cryptography. Each block typically contains:
- A hash pointer as a link to a previous block,
- A timestamp, and
- Transaction data.
By virtue of their design, blockchains are resistant to modification of their data, since the hash pointer would change if the data in the previous block changed.
Blockchains have been called distributed ledgers, which are typically managed by a peer-to-peer network – that’s what the Bitcoin network is, after all. Decentralized consensus with a blockchain is required to manipulate the data entered in the blocks.
While traditionally the use of blockchain had been restricted to just bitcoin, today it has made its way into a number of diverse fields. In fact, blockchain is the real gamechanger of today’s time, more than bitcoin!
Blockchain technology is being used for a multitude of purposes, including the recording of events, medical records, management activities, such as- identity management, transaction processing, documenting provenance, and food traceability.
All the different fields that the technology has now crept into are further discussed below in detail:
Finance and Banking:
Major financial institutions like Visa and MasterCard are finding non-malleable, non-corruptible mechanism of blockchain technology to be attractive and are investing millions of dollars into the blockchain research.
The Bank of England is also discussing issuing their national currency, the pound on blockchain. If successful, the technology would make currencies more traceable, allowing the banks to track them through the financial system. The Australian Securities Exchange – ASX – is finding out the viability of replacing its post-trade clearing and settlement system with a blockchain version. This could be a turning point for blockchain and potentially a catalyst for widespread adoption.
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Government:
National governments are exploring the potential of the blockchain technology to replace or streamline those bureaucratic processes that currently, lack any strict procedure.
The UK Government Office for Science published recommendations for their country’s government concerning the implementation of blockchain technology. It also included five use-case studies which attempt to demonstrate:
- protection of systems and infrastructure from cyber attacks
- reduction of operational costs
- improvement in record keeping of social service benefits and eligibility
- improvement in traceability of expenditures, and
- reduction of tax fraud
Similarly, the United States Postal Service is also looking into the possibility of using blockchain to improve their own operations, logistics and financial services. Like bitcoin, they want to introduce the “postcoin” that would be rewarded to miners who successfully add blocks to the chain of postal data, which would then be redeemable at a local post office for a fixed amount of fiat currency.
Healthcare
Healthcare is one major factor of determining people’s satisfaction in a particular country. And to be honest, the system is trembling in most nations of the world, including developed countries like the USA. Some of the major challenges that the healthcare systems are tackling across the world are: keeping track of medical bills through multiple health insurers, loan providers and caregivers. Storing patients’ medical records in a secure manner so that only the concerned individuals get access to it is another challenge.
A proposed method of countering the spiraling costs of healthcare is the use of the blockchain to ease and centralize the storage of medical records, service authorizations, claims histories, and member eligibility status to name a few.
While the other industries try their hands at the blockchain research, the healthcare industry too made an approach through a contest. The U.S. Department of Health and Human Services announced a competition for the public to submit original whitepapers detailing possible case scenarios of blockchain technology in the sector. The major winners highlighted subjects like privacy, security, improved information exchange, claims administration and storage of sensitive patient data.
The first winning paper detailed a blockchain-based method of storage and analysis of healthcare data with total privacy; limited access being granted with the help of smart contracts and digital identities.
Smart Contract is a blockchain based contract that holds both parties accountable. The terms of the agreement are completed only after both parties have fulfilled their end of the bargain.
Human Rights
It might be rather surprising to find this sector on the list. Nevertheless, blockchain has deeply affected and to a great extent revived the condition of those deprived of basic human rights. The technology has a potential to create massive social change by tackling major issues concerning finance, politics and institutional corruption.
1. Tackling the refugee crisis
Just in 2017,, more than 10,000 Syrian refugees were sent cryptocurrency-based vouchers.
The movement was led by Ethereum co-founder Gavin Wood, and blockchain big data firm Datarella, Parity Technologies who put this platform into action in order to help thousands of refugees use cryptocurrency to purchase food, according to Coindesk.
Today, the global refugee crisis continues to grow, and the agencies who are heavily invested are looking toward new solutions to solve an otherwise unmanageable situation.
2. Creating financial avenues for the world’s most impoverished people
The blockchain platform used to provide financial vouchers to refugees is also helping to bridge a poverty gap around the world. As we’ve already seen, blockchain can act as a bank-like institution for people without bank accounts.
Additionally, since blockchain is a decentralized system, you don’t get charged to transfer money the way you would with typical financial institutions. This disrupts the international socio-economic landscape because remittance is costly and provides windows of opportunities. It also creates a financial strain for people sending money to their family members overseas.
This technology tackles two huge variables of global poverty:
- Blockchain technology makes sending money cheaper for migrants, immigrants and refugees who need to send money back to their families.
- iIt makes doing business with hard-to-reach countries more convenient.
This alone has the potential to lessen extreme poverty.The only barrier to entry however, is that you need access to a smartphone.
3. Preventing voter fraud
Cybersecurity and voter fraud have been exceptionally concerning aspects especially, since the United State’s 2016 election. Unfortunately, this isn’t the first instance where voter legitimacy has been in question.
Voter fraud is a critical threat to the formation of democracy across the globe.
Blockchain technology if developed, definitely has the ability to provide an unhackable electronic vote-counting system. The utilisation of the blockchain will be similar to when it acts as a public ledger for cryptocurrencies. It will help to create a permanent and public ledger for votes as soon as they are tallied. This technology holds the promise of a future wherein we can have equal and fair elections in democracies across the world.
The key is to use blockchain technology to develop a standard for transparency. It has the potential to ensure closing of the economic gap and preservation of human rights.
Food Traceability:
Walmart is using blockchain technology co-developed by IBM.
Using blockchain, Walmart is trying to achieve the following objectives :
- Obtain crucial data including suppliers, details on how and where food was grown and who inspected it. The database extends information from the pallet to the individual package.
- Guarantee the freshness and authenticity of the product
- Deliver food to stores faster, reducing spoilage and waste
- Cut costs
- Improve transparency and thereby safety
Another major plus about this system is that in case of any diseases or outspread of viruses, the retailer would be able to identify the supplier and can recall the products that were purchased from them.
The use of blockchain is in the testing process in this particular industry and the uses of this technology are still being explored.
Wrapping up:
The technology has appealed to large corporations, governments and other entities looking for a more efficient and secure way to perform transactions and maintain records or databases.
Blockchain, as both a technology and an industry, is still largely undefined. We are in an exploration stage, with investments yet to be paid off with well-defined solutions. However, it’s a promising (and relevant) solution aiming to solve some of the most pinching issues in vulnerable areas: corruption, financial inequality, and access to information.